One of the quickest ways to send money from one person to another is using direct money transfer or wire transfer. Direct money transfer has been in use for several decades throughout the world. In a conventional direct money transfer process, person A deposits money, usually in cash, with a money transfer agency, e.g., Western Union, and provides the details of a beneficiary person B to the money transfer agency. The money transfer agency generates a unique number that identifies the particular transaction and provides that number to person A. Person A then provides the unique number to person B and informs person B about the pending transfer. Person B can then visit a branch of the money transfer agency at his location and present the unique number to collect the money, usually within a few hours. The money transfer agency does the settlement process internally and charges a percentage of the money transferred as its fees. If person B does not pick up the money within a specified time, the money may be escheated to the money transfer agency or to the state depending on the law.
Although convenient, the conventional money transfer system has various disadvantages. First, person A has to call/inform person B about the money being sent and provide the unique number to person B. Second, person B has to locate a money transfer agency branch closest to him and check with that branch if he can collect the money from that branch. If the closest branch is far away from person B's location, the time gained by using direct money transfer may be lost because of the time required to collect the money. Third, if the unique number is lost, there may be no way of collecting the money. Fourth, if the unique number is stolen, there is a possibility that anyone can collect the money.
What is needed is a more robust and convenient way for transferring money that will aid fraud mitigation and prevent escheatment.